Malibu Boats (NASDAQ:MBUU) Issues Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Key Points

• Malibu Boats missed quarterly expectations, reporting EPS of $0.15 versus $0.21 expected and revenue of $252.9 million versus $257.6 million. Revenue rose 28.1% year over year, but adjusted EBITDA excluding Saxdor declined to $10.3 million from $11.8 million.
• Management cited softer summer demand, especially for ski/wake boats, and an approximately 11% drop in industry powerboat registrations during July–September. It expects the market to decline mid- to high-single digits through the transition period and plans to align shipments with retail demand.
• For the December quarter, the company forecast sales of $236 million–$248 million and adjusted EBITDA of $13 million–$15 million. Shares fell 16.3% on Thursday to $20.71.

Malibu Boats (NASDAQ:MBUU - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.15 EPS for the quarter, missing the consensus estimate of $0.21 by ($0.06), FiscalAI reports. Malibu Boats had a net margin of 0.18% and a return on equity of 4.78%. The firm had revenue of $252.94 million for the quarter, compared to analyst estimates of $257.64 million. During the same quarter in the prior year, the business posted $0.15 EPS. The firm's quarterly revenue was up 28.1% compared to the same quarter last year.

Here are the key takeaways from Malibu Boats' conference call:

• Net sales rose 29.9% to $252.9 million, including $51.1 million from Saxdor, while adjusted EBITDA increased 21.7% to $14.3 million. Excluding Saxdor, adjusted EBITDA fell to $10.3 million from $11.8 million, with weaker Malibu performance weighing on legacy results.
• Management said summer retail demand softened, particularly in ski/wake boats, as payment-sensitive buyers remained cautious; industry powerboat registrations fell about 11% in July–September. The company expects a mid- to high-single-digit market decline through the transition period and plans to keep wholesale shipments aligned with retail demand amid elevated incentives.
• U.S. Saxdor production at Fort Pierce began ahead of schedule, with serial production underway and capacity for about 200 boats annually before a plant expansion. Saxdor’s 8% adjusted EBITDA margin reflects ramp-up investment, and management expects margins to move toward 10%–11% as production scales and the model mix shifts to larger boats.
• For the December quarter, the company forecast net sales of $236 million–$248 million and adjusted EBITDA of $13 million–$15 million. Management expects the July–December transition period to have lower margins than the following six months, partly because of Saxdor’s production ramp, and cautioned that the transition-period results should not be annualized.
• Free cash flow was negative $39.5 million, primarily reflecting a seasonal inventory rebuild, annual compensation and dealer incentive payments; management expects working-capital needs to ease through the first half of calendar 2027. The company ended September with $213.5 million of available liquidity and pro forma net leverage of about 1.5 times.

Malibu Boats Trading Down 16.3%

NASDAQ:MBUU traded down $4.04 on Thursday, reaching $20.71. The company's stock had a trading volume of 935,927 shares, compared to its average volume of 265,632. Malibu Boats has a 12-month low of $19.46 and a 12-month high of $34.97. The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.31. The firm has a market cap of $407.57 million, a price-to-earnings ratio of 19.64 and a beta of 1.20. The stock has a 50 day moving average price of $23.72 and a 200 day moving average price of $26.88.

Wall Street Analyst Weigh In

MBUU has been the subject of several recent analyst reports. Truist Financial cut their price target on Malibu Boats from $34.00 to $26.00 and set a "hold" rating for the company in a research note on Friday, October 23rd. Raymond James Financial restated a "market perform" rating on shares of Malibu Boats in a research report on Monday, August 31st. Weiss Ratings raised shares of Malibu Boats from a "sell (e+)" rating to a "sell (d)" rating in a research note on Thursday, August 27th. Benchmark reaffirmed a "buy" rating on shares of Malibu Boats in a research note on Friday, August 28th. Finally, Zacks Research cut Malibu Boats from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 9th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $30.00.

Malibu Boats Company Profile

Malibu Boats, Inc is a recreational powerboat manufacturer headquartered in Loudon, Tennessee. The company designs, manufactures and sells boats for watersports, boating and fishing activities, serving consumers through a network of independent dealers in the United States and international markets.

Its portfolio includes Malibu and Axis wake and watersports boats, as well as a range of saltwater and freshwater fishing and offshore boats sold under brands including Pursuit, Maverick, Cobia, Pathfinder and Hewes.

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